Apple Accuses OpenAI of Hardware Trade Secret Theft in a Groundbreaking Lawsuit
In a shocking legal confrontation that has sent ripples through Silicon Valley, Apple Inc. has filed a lawsuit against OpenAI in a federal court in Northern California. The AI behemoth stands accused of conducting a systematic campaign to pilfer confidential hardware trade secrets. This marks a surprising turn of events for two companies that were celebrated business partners merely two years ago.
The 41-page complaint, lodged on July 10, 2026, singles out OpenAI’s Chief Hardware Officer Tang Tan as a key defendant. Tan, a 24-year Apple veteran and former VP of product design for the iPhone and Apple Watch, is alleged to have directed job candidates still employed at Apple to bring “actual parts” — including batteries and logic boards to OpenAI interviews for “show and tell” sessions. He is also accused of instructing departing employees on how to circumvent Apple’s exit security procedures.
Also implicated is Chang Liu, a former senior electrical engineer who allegedly failed to return an Apple-issued laptop and used it to download numerous confidential technical documents after joining OpenAI.
Apple further alleges that io Products — the hardware startup co-founded by legendary Apple designer Jony Ive and acquired by OpenAI for $6.4 billion — exploited Apple’s proprietary metal-finishing industrial techniques without permission.
Apple is seeking injunctive relief, monetary damages, and the return of all confidential materials. OpenAI has denied the allegations, asserting it has “no interest in other companies’ trade secrets.” The lawsuit introduces significant legal risk to OpenAI as it gears up for its own anticipated IPO.
Source: TechCrunch – Apple sues OpenAI over alleged trade secret theft